Alligator Alley trip may become pricey

The fastest route through the Everglades could lead drivers straight through a private company's toll booths by this time next year.

The Florida Department of Transportation plans to talk to contractors this week about leasing out Alligator Alley, which could put the 78-mile toll highway into the hands of private interests.

While the alley might not be a path paved with gold, it is considered to be the most lucrative choice for privatization of the state's toll roads - especially if drivers kick in a few extra coins.

The state is considering the lease because it could rake in $500 million to $1.3 billion in an Alligator Alley deal, with the profits being used on other road projects, depending on how high the toll could rise - either to $6.75 or $10 in the first decade, based on two different scenarios.

In the first year, drivers could see tolls jump to $3 each way. The toll for passenger cars is now $2.50 each way, $2 for those who use the electronic SunPass.

"It's a long, flat continuous stretch of road, rather than a bridge, with lower upkeep costs," said Bill Thorp, the DOT's interim assistant secretary of finance and administration. "And it's a road that's currently being resurfaced, so it's going to have a value that we think will be of interest to the private sector."

The DOT is holding a forum in Orlando on Thursday to gauge the interest of investment firms and others in taking on the responsibility of maintaining and operating the highway.

But Sen. Dan Webster says he has a better idea that would keep Alligator Alley under the state's control and still give the state a big infusion of cash for road projects.

The Winter Garden Republican is proposing the state lease Alligator Alley to the state-run Lawton Chiles Endowment Fund, named for the late Democratic governor who led Florida's fight against cigarette makers.

The Legislature created the fund in 1999 to invest some of the money Florida won in settling a lawsuit with tobacco companies. The roughly $2 billion fund is handled by the state board of administration, which invests public money and aims to earn a 7 percent return each year.

Webster said the Endowment Fund could invest a certain amount of money in a 50-year lease of Alligator Alley and get a better return than is currently available with other investments.

Tolls on the road would provide the return on investment. The highway generates about $23.5 million in tolls a year.

Webster's idea, called "Florida investing in Florida," is likely to be included in a large Senate transportation bill that's moving through committees. So far, the idea hasn't been proposed in the House.

Top officials at the DOT said they haven't had an opportunity to review Webster's proposal but are open to the idea.

Kevin Thibault, the DOT's assistant secretary of engineering and operations, said there's still time to analyze both plans without holding up the state's intent to meet with private contractors this week. "We're interested in getting the best deal possible," he said.

In June, Gov. Charlie Crist signed into law a bill that allows the state to lease some existing toll roads, including Alligator Alley, the Pinellas Bayway and Sunshine Skyway bridges in the Tampa Bay area and the Beachline Expressway east of Orlando. Florida's Turnpike is specifically excluded.

Some drivers don't like the idea of a road built with public money being handed off to a private company.

Phil Feldman, who splits his time between Margate and Ontario, said Florida officials would do well to learn from Toronto's experience with private toll roads.

Since Toronto's Highway 407 was leased to private owners in the late '90s for $1.6 billion, tolls have increased by more than 200 percent. Complaints of shoddy billing and collection procedures have abounded.

"Once under private control, the tolls will be increased phenomenally and the politicos look good because suddenly, the state has decreased their deficit," Feldman said. "If the state goes ahead and does lease the road to private interests, they should make sure that they can control the toll charges."

Thorp said the state will retain control of Alligator Alley's toll rates, with the increases spelled out in any lease agreement between the state and the private company.

Alligator Alley opened as a two-lane road in 1969. It was widened to four lanes from 1986 to 1992. Even though it was designated as part of the interstate system as Interstate 75 in 1993, the road is owned, operated and maintained by the state.

Tolls for cars have been raised only once: by 50 cents for SunPass users and $1 for cash customers in 2006. By the end of the month, Thorp said the state plans to seek qualified companies, the next step to inviting them to bid based on their qualifications.

A lease with the winning company could be awarded this fall. The only thing standing in its way is the state's Legislative Budget Commission, a small panel of lawmakers that must sign off on the deal.

"We think under a very aggressive schedule, we could complete a transaction in December," Thorp said.

Michael Turnbell can be reached at mturnbell@sun-sentinel.com or 954-356-4155.

INFORMATIONAL BOX:

If you go

The Florida Department of Transportation will hold a forum this week in Orlando with companies interested in leasing Alligator Alley.

The forum, which is open to the public, is from 1-5 p.m. Thursday at the Buena Vista Palace Hotel, 1900 Buena Vista Drive, Orlando.